A local government agency has asked you to consult regarding acquisition of land for recreation needs for the urban area. The following data are provided: Urban population 10 years ago 49,050, Urban area population now 89,920, Desired ratio of recreation land in acres per 1,000 population 10 acres/1,000, Actual acres of land now held by local government for recreational purposes 803 acres
a. Find the annual growth rate in the urban area by assuming that the population grew at a compounded annual rate over the past 10 years.
Growth rate = population end population beginning/population beginning, Growth ratio = growth rate x 100% 89,920-49050/49,050 = .83 x 100% = 83%b. How many years ago was the desired ratio of recreation land per 1,000 populations exceeded if no more land was acquired and the population continued to grow at the indicated rate?89920-49050 = 40870 increase in population, 40000/1000 x 10 = 400 acres of land purchased during the increase of population, 40870/10= 4087 increase of population per year for 10 years, 400 803 = 403 acres the government had at the beginning of the population increase. 2 months is the answer.
c. The local government is planning to purchase more land to supply the recreational needs for 10 years past the point in time found in part
(b). How many acres of land should they purchase to maintain the desired ratio, assuming that the population growth continues at the same rate?4087/1000 x 10 = 48.7 acres per year.3.10 Your firm wants to purchase a $50,000 computer, no money down. The $50,000 will be paid off in 10 equal end-of-year payments with interest at 8% on the unpaid balance. a.